Red Cross to create private investment platforms for humanitarian work

Published 12/09/2019, 17:05
Updated 12/09/2019, 17:11
Red Cross to create private investment platforms for humanitarian work

By Libby George

LAGOS, Sept 12 (Reuters) - The International Committee of

the Red Cross (ICRC) wants to connect private investors with

potentially money-making projects in areas blighted by conflict,

its president said on Thursday.

The ICRC head told business leaders in Nigeria's commercial

capital Lagos that it plans to launch five to ten new financing

mechanisms by 2025 in conflict-hit areas around the world where

investors typically would not venture.

Private cash and expertise - via financial mechanisms such

as bonds and direct investment platforms - would give displaced

people long-term access to food, water and shelter without

relying on aid convoys, said ICRC president Peter Maurer.

Ideally, he said, the money could also help them start their

own small businesses or farms.

"With longer, more protracted conflicts ... we need to give

people income opportunities," Maurer said. "Even if they are in

refuge camps, even if they are in (internally displaced person)

camps, they want to do something," he added.

ICRC will use the new financing models around the world, but

Maurer said Nigeria's cash-rich businesses - and conflict-prone

regions - make it an ideal experimental ground.

The decade-long insurgency waged by militant Islamist group

Boko Haram in northeast Nigeria has forced more than 2 million

people to flee their homes in one of the world's worst

humanitarian crises.

Elsewhere, people from Syria, Myanmar and South Sudan are

also facing long-term displacement.

The ICRC said its success with a "Humanitarian Impact Bond"

launched in 2017 prompted it to look at other funding mechanisms

that could pair investors with specific projects. [https://reut.rs/2kc4dEU

Maurer said a water distribution project it built in the

northeast Nigerian city of Maiduguri and an app it developed in

South Sudan to help diagnose diseases in children were both

potentially money-making ventures that could be taken over by

the private sector.

In future, he said the collaboration would enable the

private sector to fund and help guide profitable - and therefore

sustainable - solutions to other basic needs.

The Lagos Chamber of Commerce and Nigerian business mogul

Tony Elumelu are trying to raise the ICRC's profile in Nigeria's

business community.

Elumelu, whose private foundation is already funding an

ICRC-backed entrepreneur project in Nigeria's northeast and

southern Delta regions, said companies need to think of it as a

new way of investing, rather than aid.

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